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FATCA NUMBERS GO UP, SLIGHTLY. Today’s the day — the Foreign Account Tax Compliance Act takes effect, and the government’s crackdown on offshore tax evasion has gotten a few more countries and banks to sign up. A senior Treasury official shared the latest figures with reporters yesterday, saying the U.S. has signed anti-tax evasion agreements with nearly 90 countries and more than 80,000 foreign financial institutions, our Rachael Bade reports. Previously Treasury had said about 70 countries and 77,000 financial institutions had signed up. FATCA requires all international financial institutions that do business with the U.S. to report bank account information on their U.S. clients — or be hit with a 30 percent withholding tax on all U.S.-source income.

TODAY: OBAMA SPEECH TO HIGHLIGHT HIGHWAY FUNDING. The Wall Street Journal reports, “President Barack Obama plans to head back to the Key Bridge in Washington, D.C., on Tuesday, which connects Rosslyn, Va., with Georgetown, to push for Congress to pass a plan that would boost the highway trust fund. … Mr. Obama isn’t expected to offer his own proposal, so as to give Mr. Wyden more room to negotiate. But he has shown little patience for congressional delays in other areas, such as immigration, and he could hint that the White House will look toward unilateral executive actions if no progress is made soon.”

“Perhaps hinting that such moves are under consideration, a White House official said Monday evening that Mr. Obama on Tuesday will also meet with administration officials and ‘receive an update on their progress implementing executive actions that together are creating jobs by investing in infrastructure and manufacturing startups,’ among other things.” http://on.wsj.com/1x8L3v2

NEW FISCAL YEAR, NEW TAX CUTS. Pew/Stateline runs through the various tax changes that’ll hit states today: “Indiana and Rhode Island businesses will see a drop in their corporate tax rates on July 1. In Idaho, people and businesses purchasing software through the ‘cloud’ will be spared sales taxes. And starting tomorrow, Maryland is beefing up tax credits related to cybersecurity, biotechnology and research and development to encourage companies to relocate to the state.”

“July 1 is the start of most states' fiscal years, and for the first time in years, governors and legislators are cutting some taxes, taking advantage of an improved revenue outlook and banking on the financial breaks to encourage business and job growth in their states. While a few fees and certain sales taxes will go up, the general trend has been to use corporate tax cuts to get the economy churning, said Brian Sigritz, director of state fiscal studies at the National Association of State Budget Officers.” http://usat.ly/1qKXXfT

IT’S TUESDAY! Are you ready for USMNT vs. Belgium? USA! USA! USA! If you want to talk taxes, you can find me at mweinger@politico.com or on Twitter at @mweinger. As always, please follow @POLITICOPro and @Morning_Tax.

HOUSE & SENATE: Out.

NORCAL TEA PARTY PATRIOTS V. IRS: TO PROCEED OR NOT TO PROCEED. “A battle of lawyers unfolded Monday in the tea party-IRS scandal in a federal courtroom in downtown Cincinnati,” Cincinnati Enquirer reports. “Seventeen lawyers representing several pools of people — including tea party members, the IRS and local agency employees — went head-to-head in a hearing to decide if various components of a high-profile lawsuit will move forward.” Twelve of the 17 lawyers who appeared are asking that the case be dismissed, and U.S. District Court Judge Susan Dlott said she would rule “as soon as possible” on what will happen next in the first tea party targeting lawsuit that was filed in the wake of the scandal. http://cin.ci/1qsc1x9

BITCOIN NOT REPORTABLE ON FBAR FOR NOW — BUT THAT COULD CHANGE SOMETIME, MAYBE. Kelly Phillips writes in Forbes that taxpayers “don’t have to report certain Bitcoin holdings” when filing their FBARs (the deadline was yesterday, by the way). The IRS issued a statement saying that the Financial Crimes Enforcement Network “is not requiring that digital (or virtual) currency accounts be reported on an FBAR at this time but may consider requiring such accounts to be reported in the future. No additional guidance is available at this time.” http://onforb.es/1me0Oi6

SCOTUS LETS EQUIFAX TAX RULING STAND. “The U.S. Supreme Court said Monday that it won't hear an appeal from credit bureau Equifax Inc. involving what it considered an adverse tax ruling in Mississippi,” The Associated Press reports. “The appeal was a reaction to a 2013 Mississippi Supreme Court decision that Equifax had to prove that it didn't earn any taxable income in the state. The state Department of Revenue examined Equifax's income and allocated some to Mississippi, ruling it owed taxes and penalties. The Mississippi court upheld the Revenue Department's calculation of the company's taxes based on revenue earned in Mississippi, thus increasing its tax liability from zero to over $700,000, according to court documents.” http://hrld.us/1meCCw5

CHRISTIE SIGNS NJ BUDGET, VETOES TAX HIKES. New Jersey Gov. Chris Christie signed a new $32.5 billion state budget yesterday, but not before vetoing two tax bills pushed by Democrats. The Star-Ledger has the story: “As he had vowed, Christie used his veto powers to redline a package of tax hikes designed by Democrats and opposed by Republicans and business lobbyists, calling them ‘vindictive.’ … Christie vetoed a bill to raise the income tax for any earnings above $1 million during three years, and another bill that would have imposed a 15 percent corporate-tax surcharge for a year.” http://bit.ly/1x7i9vx

LOST IRS EMAILS SHOWCASE GOVERNMENT-WIDE PROBLEM. The New York Times’ The Upshot reports, “During last Monday’s congressional hearing into the Internal Revenue Service’s loss of emails, Blake Farenthold, a Texas Republican, offered what on first glance seemed a simple solution to archiving agency email: ‘I went on Amazon and found you could buy a terabyte hard drive for $59. Buy two of them, so $120.’ If only it were that easy. Two large-capacity hard drives would indeed have provided the storage the I.R.S. office needed, but Mr. Farenthold’s proposal obscures the other obstacles the I.R.S. and other government agencies face.”

“Federal agencies are hampered both by outdated and expensive computing infrastructure and by regulations that won’t require modern storage and retrieval techniques until the end of 2016 at the earliest. … Carl Malamud, the founder and president of the nonprofit Public.Resource.Org, which places state and federal government information in the public domain, described a deeper problem: Despite spending billions on information technology, the federal government has not kept pace with advances in technology. It has developed a defensive posture when the public and Congress demand information.” http://nyti.ms/1pE0FGS

HEADLINE OF THE DAY. From The New York Post (where else, c’mon?): “The tax man succumbeth: Five years for fraud, false returns.” http://bit.ly/1k8du48